The working capital cycle

IB Business Management: The working capital cycle

Cash said to be the lifeblood of a businessWorking capital (or net current assets) is cash or other liquid assets available to an organization for its daily operations, such as paying for raw materials, utility bills and staff wages. Hence, working capital (or circulating capital) enables the business to function and trade. Working capital is a common measure of an organization"s liquidity, efficiency, and overall financial...


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